In Media Releases

Media ReleasePayments System Board Decisions

Number2005-10

Date22 August 2005

At its meeting on 16 August 2005, the Payments System Board took two decisions under
the Payment Systems (Regulation) Act 1998.

The first was to impose an Access Regime on the Visa Debit System. This will ensure
that Specialist Credit Card Institutions (SCCIs) are eligible to join the
Visa system to provide services to merchants accepting both Visa credit and
debit cards. The regime will override (in Australia) Visa's international
rules which might otherwise have prevented some SCCIs from joining the Visa
system. The Access Regime, which Visa supports, is largely the same as that
imposed on the Visa credit card system in February 2004.

The second was to declare that the provisions of the Payment Systems
(Regulation) Act 1998 which refer to purchased payment facilities
(stored-value cards) do not apply to a gift card proposed by Westfield for
use within its shopping centres. This decision reflects the nature and limited
purpose of the Westfield gift card. The Bank, in conjunction with ASIC, is
currently examining the possibility of widening its existing class exclusions
so that the Act does not apply to any similar gift cards issued in the future.

The Bank has today gazetted the Access Regime and its decision regarding the Westfield
gift card.

Enquiries

John Veale
Head of Payments Policy Department
Reserve Bank of Australia
SYDNEY